Weingarten Realty to Sell Two Industrial Properties

By Sarah Baker

Weingarten Realty Investors, a Houston-based owner, manager and developer of shopping centers, is preparing to sell its wholly-owned industrial portfolio – which includes two properties in Memphis – to New York-based DRA Advisors LLC for $382.4 million.

The portfolio is made up of 52 industrial properties, totaling 9.6 million square feet in Florida, Georgia, Tennessee, Texas and Virginia. Closing of the transaction is expected to occur within the next 45 to 60 days.

Weingarten Realty currently owns eight Memphis industrial buildings, all of which are managed by Brad Murchison of CB Richard Ellis Memphis. However, Southpoint I (4715 Shelby Drive) and Southpoint II (4655 Shelby Drive) are the only two properties being sold. The others are owned by Weingarten in a partnership.

Weingarten plans to use proceeds from the transaction to pay down amounts outstanding under its revolving credit facility and repay a $200 million unsecured term loan. The company is working towards exiting from industrial real estate in efforts to strengthen its position as a pure retail REIT.